Bitcoin (BTC) extended its decline on Friday as traders reacted to the expiration of the year’s biggest option and continued caution in crypto ETF flows.
Summary
- Bitcoin fell below $66,000 after $14 billion in options expired and ETF outflows continued on Friday.
- Whale and retail portfolios added Bitcoin in March even as prices fell and sentiment weakened.
- Analyst XO said a drop to between $55,000 and $60,000 could create long positions in April.
Consequently, the decline pushed the asset to its lowest level in over three weeks, even though some market signals pointed to increasing accumulation and possible oversold conditions.
Bitcoin fell to $65,500 on Friday, its lowest level since March 2. At the time of writing, BTC was trading near $66,300, down 2% over 24 hours and 6% over the past week (according to CoinGecko data).
Meanwhile, the move came as around $14 billion worth of Bitcoin options expired, based on open interest. This expiration added pressure to an already cautious market and pushed traders into a more defensive position during the session.
ETF activity also remained in focus as investors continued to withdraw funds from spot Bitcoin products. Data showed investors withdrew $171 million from spot ETFs on Thursday, adding to short-term pressure on price action.
However, the overall monthly picture seems more balanced. In March, after four consecutive months of net outflows, around $1.4 billion in net inflows into Bitcoin ETFs were recorded, showing that demand has not completely disappeared despite the latest setback.
While prices remained under pressure, on-chain data indicated continued buying from large holders and small wallets. According to Santiment, wallets holding between 10 and 10,000 BTC added 61,568 BTC over the past month, an increase of 0.45%.
Smallholders also showed similar behavior. Wallets holding less than 0.01 BTC increased their balances by 0.42% during the same period, almost matching the rate seen among whales and sharks.
Analysts monitor oversold rebound
Market watchers also pointed to oversold signals, with Bitcoin trading well below its October 2025 all-time high above $126,000. Current prices left BTC down 47.42% from that high, while its market cap stood at nearly $1.33 trillion.
Crypto analyst XO said March could mark only the second time Bitcoin records six straight months of loss if the month ends in the red. He wrote,
“If April sees an early sweep into the $55-60,000 range, this could create a compelling setup for long positions with mean reversion.”
He also said the trend toward longer lead times would remain under control unless a clear structural change emerges.
Disclosure: This article does not represent investment advice. The content and materials presented on this page are intended for educational purposes only.
